Bitcoin News Today: Ethereum's $2,700 Test: Crypto's Fate Hangs in the Balance

Bitcoin's sharp decline has reignited bear market fears as the cryptocurrency's price nears critical technical levels. The 5% simple moving average (SMA) threshold, a key indicator for trend reversals, now looms as a critical test for the digital asset. Meanwhile, Ethereum's struggle to hold above $2,700 has intensified concerns about broader market fragility.

The CoinDesk Bitcoin Price Index fell 2.09% to $84,535.40 on November 21, marking its worst weekly performance since February 2025, with a 10.32% drop over seven days. This follows a 22.99% monthly decline and a 33.05% retreat from its all-time high of $126,272.76 set in October. The sell-off has pushed Bitcoin's 52-week low to $78,939.11, the lowest since April 2025, with intraday losses reaching 6.66% on November 21 - the largest single-day drop since October. Analysts warn that a breakdown below the 5% SMA could trigger further capitulation, as leveraged positions and algorithmic trading strategies amplify downward pressure.

Ethereum, while holding up better than many altcoins, faces its own existential test. The token is trading near $2,700, a key support level that coincides with the 61.8% Fibonacci retracement of its recent rally. Technical analysts note that a break below $2,500 would signal a deeper bearish phase, potentially extending the correction to 43% of its peak-to-trough range. The crypto market cap, already reeling from speculative losses, has dipped below $2 trillion, with daily trading volumes reflecting heightened panic.

The broader market environment remains fragile. High leverage among retail and institutional investors has created a cascading effect, where profit-taking in one asset class triggers panic across others. Altcoins like Solana have been hit particularly hard, trading below $125 as risk-off sentiment dominates. While some strategists argue that dollar-cost averaging (DCA) strategies could stabilize long-term demand, the immediate outlook hinges on Bitcoin's ability to defend the 5% SMA. A sustained close below this level would likely accelerate margin calls and liquidations, further eroding confidence.

Regulatory uncertainty and macroeconomic headwinds - particularly rising interest rates - add to the bearish narrative. Investors are now closely watching for signs of stabilization, with many betting on a potential rebound if Ethereum holds its $2,700 support. However, without a clear catalyst for a reversal, the path of least resistance for crypto markets remains downward.